#美SEC促进加密资产创新监管框架 The Fed might make a big move next week, and it’s not just about a rate cut. $BTC $ETH

A former New York Fed analyst has revealed that Powell is very likely to announce next Wednesday that, starting in January next year, the Fed will buy $45 billion in Treasury securities every month. That’s a significant amount. It’s basically turning the liquidity tap back on and pumping cash into the market.

Why the sudden move? Bank reserves are running low. Repo market rates have been jumping lately, and the financial system is starting to tighten up. If they wait any longer, the problem could get worse.

On the surface, it’s to address year-end liquidity strains and stabilize short-term rate fluctuations. But the underlying signal is even clearer: after nearly three years of quantitative tightening, a real reversal is coming. How will the $45 billion be allocated? $20 billion will cover regular needs, and the remaining $25 billion will plug the gap left by aggressive balance sheet runoff. This round of operations will last at least half a year.

The timing is worth noting as well. Powell’s term is ending soon, and the Fed may have a new chair. Whoever takes over, a smooth transition is the top priority. So this round of bond purchases isn’t just a technical adjustment—it’s more like laying the groundwork for next year’s monetary policy.

Right now, the market is laser-focused on rate cuts, but it may be overlooking the impact of balance sheet expansion. Once the liquidity tap is open, global capital flows will be affected. Where will this money eventually end up? What kind of ripple effects will it have on other markets? Let’s talk about your predictions.